Business Requirements Specification

Transcription

1 Business Requirements Specification Flexible Resource Adequacy Criteria and Must- Offer Obligation Revision History Date Version Description 5/30/ Creation of Document 7/21/ Deletion of BRQ100 requirement was outdated. Modification of BRQ600 to clarify the business rule. Doc ID: GNFDMDEHU6BB Page 1 of 15

2 Disclaimer All information contained in this draft Business Requirements Specification (BRS) as provided by the California Independent System Operator Corporation (ISO) is prepared for discussion and information purposes only. The draft BRS is provided as is without representation or warranty of any kind, including, without limitation, a representation or warranty as to accuracy, completeness, or appropriateness for any particular purpose. The draft BRS shall be revised as the development and review of the business requirements progresses. The ISO assumes no responsibility for the consequences of any errors or omissions. The ISO may revise or withdraw all or part of this information at any time at its discretion without notice. Doc ID: GNFDMDEHU6BB Page 2 of 15

3 Table of Contents 1. INTRODUCTION PURPOSE REFERENCES DETAILS OF BUSINESS NEED/PROBLEM DESCRIPTION HIGH LEVEL BUSINESS PROCESS DESCRIPTION BUSINESS PROCESS IMPACTS HIGH LEVEL BUSINESS PROCESS Description BUSINESS REQUIREMENTS BUSINESS PROCESS: < ISO PROCESS FOR DETERMITION OF FLEXIBLE CAPACITY NEEDS > Business Requirements BUSINESS PROCESS: < ISO PROCESS FOR ALLOCATION OF FLEXIBLE CAPACITY NEEDS > Business Requirements BUSINESS PROCESS: < ISO PROCESS FOR FLEXIBLE CAPACITY RA SHOWING > Business Requirements BUSINESS PROCESS: < ISO PROCESS FOR FLEXIBLE CAPACITY RA SHOWING ASSESSMENT AND RESOURCE COUNTING> Business Requirements BUSINESS PROCESS: < ISO PROCESS FOR MUST-OFFER OBLIGATION> Business Requirements BUSINESS PROCESS: < ISO PROCESS FOR SETTLEMENT AND BILLING OF FLEXIBLE CAPACITY SYSTEM DEFICIENCIES> BUSINESS PROCESS: FLEXIBLE RA RUC VALIDATION Business Requirements Doc ID: GNFDMDEHU6BB Page 3 of 15

4 1. Introduction 1.1 Purpose The purpose of this document is to capture and record a description of what the Users and Business Stakeholders of the project wish to obtain by providing high-level business requirements. This document establishes the basis for the agreement between the initiators and implementers of the project. The information in this document serves as input to determining the scope of Information Systems projects and to all Business Process Modeling and System Requirements Specifications efforts. The purpose of MOO project is to develop processes, applications and systems and prepare and file at FERC the ISO tariff changes to address forward flexible capacity procurement to ensure that there is sufficient flexible capacity to address the added variability and uncertainty of variable energy resources as a consequence of integrating a 33 percent Renewable Portfolio Standard (RPS) and meeting California s goals to eliminate generation using once-through-cooling and increased distributed generation. 1.2 References All references represent external requirements documents or stakeholder requests developed and submitted by the Business Units. 1. Policy initiative page is located at: MustOfferObligations.aspx Doc ID: GNFDMDEHU6BB Page 4 of 15

5 2. Details of Business Need/Problem 2.1 Description Integrating a 33 percent Renewable Portfolio Standard (RPS), maintaining local reliability, and meeting California s goals to eliminate generation using once-through-cooling and increased distributed generation creates several operational challenges for maintaining grid reliability. Among these challenges is ensuring that there is sufficient flexible capacity to address the added variability and uncertainty of variable energy resources. The ISO has been working with the California Public Utilities Commission (CPUC) and other local regulatory authorities (LRAs) to meet these challenges. On June 27, 2013, the CPUC approved the final decision in its RA proceeding, which establishes interim flexible capacity procurement obligations as part of the CPUC s RA program. The decision calls for CPUC jurisdictional load serving entities to meet a flexible capacity procurement target for RA compliance year 2014, with these targets becoming procurement obligations in RA compliance year 2015 what will require the ISO tariff changes to address forward flexible capacity procurement. 2.2 High Level Business Process Implementing the MOO will impact the following existing business processes: Manage Reliability Requirements Manage Data Requests Manage Entity & Resource Maintenance Resource Management Manage Long-Term Transmission Planning (RA and LCR Studies) Manage Day Ahead Market and Real Time Hourly Market Manage Market Billing and Settlement BPM Change Management Manage Tariff Amendments. Doc ID: GNFDMDEHU6BB Page 5 of 15

6 2.3 Description Specific impacts on some of business processes are as follows: Manage Reliability Requirements: Manage Reliability Requirements process flow shall be modified to reflect the acceptance, verification and processing of Flexible Capacity RA data via GUI, determination of EFC values, issuing EFC list, performing EFC verification and determination of necessary backstop procurement for flexible capacity system deficiencies. Manage Data Requests: To calculate necessary flexible capacity and its allocation to LSE s the ISO needs CEC s approved Load Forecasts, Forecast of LSE s Renewable Portfolio development, and LSEs historical load data. Manage Day Ahead Market and Real Time Hourly Market: MOO must-offer obligation requires flexible capacity resources to bid into day-ahead and real-time markets. For the 2015 RA compliance year, resources that reach monthly or annual use-limitations during a month or resources that are on a planned or forced outages, will not be subject to MOO availability charges or requirement to provide substitute or replacement flexible capacity. However, for 2015 RA compliance year the ISO will calculate the compliance with the must offer obligation of each resource category and publish this list to inform and help LSEs in their future flexible capacity procurement. Settlement and Billing: Development of MOO backstop procurement settlement for flexible capacity system deficiencies. Manage Long-Term Transmission Planning (RA and LCR Studies): Incorporation of MOO in annual RA and LCR process. Doc ID: GNFDMDEHU6BB Page 6 of 15

7 3. Business Process Impacts 3.1 High Level Business Process Description The Flexible Resource Adequacy Criteria and Must-Offer Obligation (MOO) project scope and stakeholder initiative for implementation in 2014 for 2015 RA compliance year includes: ISO study process to determine flexible capacity requirements Allocation of flexible capacity requirements RA showings of flexible capacity to the ISO Flexible capacity must-offer obligation Backstop procurement of flexible capacity system deficiencies. Each year, the ISO will determine the system s flexible capacity need for the upcoming RA compliance year. The ISO will undertake this flexible capacity need assessment on a schedule that mirrors its local capacity need study schedule. The process will include stakeholder meetings where the ISO will present and discuss the inputs and assumptions used in the assessment. Upon completion of this assessment, the ISO will use the results to allocate shares of the system flexible capacity need to each of the LRAs responsible for load in the ISO balancing authority area. The ISO will provide the final results of its flexible capacity need assessment by May 1 to each LRA in the ISO balancing authority area. The ISO will provide each LRA with (1) the total system need, (2) the LRA s share of the total system need, and (3) each of the LRA s jurisdictional LSEs contribution to the net-load ramp that were used to calculate the LRA s share of the total system need. The ISO proposes the flexible capacity requirement assessment utilize the following process: Month/Timing January Event Receive CEC load forecast used for Transmission Planning Process expansion plan Receive updated RPS build-out data from the IOUs Publish annual Flexible Capacity Needs assumptions paper February March ISO stakeholder meeting to discuss assumptions, stakeholder comments, and posting of comments with ISO response Draft LCR and Flexible Capacity Needs study completed followed by local & flexible capacity requirement stakeholder meeting Publish draft final LCR & FCR needs study (including determination of the error term) Doc ID: GNFDMDEHU6BB Page 7 of 15

8 April May/June ISO stakeholder meeting to discuss LCR / FCR / error term results followed by stakeholder comments Final 2014 LCR & FCR study posted CPUC annual RA decision incorporating LCR and FCR procurement obligations July August September October Monthly LSEs receive year-ahead flexible capacity procurement requirement from LRA Revised load forecasts and renewable build-outs for following RA compliance year LSEs receive revised RA and flexible capacity obligation. Final effective flexible capacity (EFC) list of eligible flexible capacity resources issued by the ISO. SCs for LSEs provide Year-ahead showing of system, local, and flexible capacity to ISO and LRA (show 100% local and 90% system and flexible) T-45 days: Month-ahead showings, including local and flexible true-up capacity to ISO and LRA T-25 days: ISO notifies SCs for LSEs and suppliers of any deficiencies of system, local, and or flexible capacity or discrepancies in showings T-11 days: Final opportunity for LSEs to demonstrate to the ISO that any identified deficiencies have been cured Doc ID: GNFDMDEHU6BB Page 8 of 15

9 The ISO is proposing to allocate the system flexible capacity need to LRAs in proportion to the sum of their jurisdictional LSEs contribution during the five maximum 3-hour net-load ramps. The ISO s flexible capacity need assessment will use the most current full year of actual load data and the most current California Energy Commission (CEC) approved load forecast to produce a data set of minute-byminute load forecast for the year upcoming RA compliance year. Additionally, all LSEs, through their SC, will submit to the ISO two lists detailing existing contracts with Variable Energy Resource (VER) for the RA compliance year in question as well as details about additional VERs that they expect to come on line in the next five years. The accuracy of the data submitted by each LSE will be critically important because the contractual information will be used by the ISO to determine the flexible capacity need and the allocation of this need to LRA. If an LSE submits inaccurate data, the ISO, upon discovering the inaccuracy, may rerun the flexible capacity need assessment during the year and recalculate flexible capacity need for the entire year to determine the impact of the inaccuracy. The LSE that submitted the inaccurate data will be charged the applicable backstop price for flexible capacity for any flexible capacity allocation they would have received under the corrected flexible capacity need assessment. The ISO will allocate the proceeds to SCs for LSEs that procured too much flexible capacity because of the inaccurate data. If the inaccurate data result yields a lower flexible capacity need allocation, for the LSE, then no change in the flexible capacity allocation will be made and no additional charges imposed. Doc ID: GNFDMDEHU6BB Page 9 of 15

10 4. Business Requirements The sections below describe the Business Processes and the associated Business Requirements involved in the project. These may represent high level functional, non-functional, reporting and/or infrastructure requirements. These business requirements directly relate to the high level scope items determined for the project. Business requirements can be grouped into the following functional groups: Determination of flexible capacity needs Allocation of flexible capacity needs Flexible Capacity RA showings to the ISO Flexible Capacity RA Showing Assessment and Resource Counting Flexible capacity must-offer obligation (availability requirements) Settlement and billing for backstop procurement of flexible capacity system deficiencies. Abbreviations used: MQ&RI Market Quality and Renewable Integration M&IP Market and Infrastructure Policy MCI Model and Contract Implementation ITPD IT Product Development MSD&C Market Settlement Design and Configuration RTN Regional Transmission North S&Q Standardization and Quality AGCR Assistant General Counsel Regulatory Doc ID: GNFDMDEHU6BB Page 10 of 15

11 4.1 Business Process: < ISO process for determination of Flexible Capacity Needs > Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ010 Acquire and prepare the CEC approved load forecast for Flexible RA Capacity requirement determination. BRQ020 Develop Data Template and gather the most current data for LSE s Variable Energy Resource (VER) contracts for public and private list of VER contracts data. BRQ030 Verify accuracy of LSE s VER data and conduct necessary correspondence with SCs. BRQ040 Generate minute-by-minute load, VER production and net-load forecasts for the upcoming five years with VER data updated and added into the base case scenario. BRQ050 Calculate flexible capacity requirements for ISO system based on maximum forecasted 3- hour net-load ramp for each month plus contingency reserve component. BRQ060 Define processes (and process steps) necessary to support flexible capacity requirement determination and add them into CAISO Business Process Framework Overview. Business Process BRQ070 Update existing LCR annual process and schedule with Flexible RA capacity studies and requirements according to table from section 4. Business Process Doc ID: GNFDMDEHU6BB Page 11 of 15

12 4.2 Business Process: < ISO Process for Allocation of Flexible Capacity Needs > Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ100 Develop data template and gather LSEs 5 minutes of load and renewable portfolio historical data necessary for allocation of Flexible Capacity needs. BRQ110 Perform calculation of monthly LRA/LSEs contribution to the largest 3 hour net-load ramp. BRQ120 Verify and update necessary error term for each RA compliance year. Note: Error term is set to 0 MW for 2015 RA compliance year. BRQ130 Send to LRA/LSE s flexible capacity allocation/obligation. BRQ140 Define process(s) for gathering necessary data, calculation of monthly LRA/LSEs contribution to the largest 3 hour net-load ramp and sending to LRA/LSE s flexible capacity allocation/obligation and add them into CAISO Business Process Framework Overview. Business Process Doc ID: GNFDMDEHU6BB Page 12 of 15

13 4.3 Business Process: < ISO Process for Flexible Capacity RA Showing > Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ200 Incorporate and conduct Flexible Capacity RA showings into existing RA showings and verify compliance with required flexible capacity for each LRA/LSE. RA System BRQ210 Update current RA showing templates for Flexible Capacity RA Showings and Compliance. RA System BRQ220 Update current RA system to consume new or updated templates from market participants for Flexible Capacity RA showing and compliance. RA System 4.4 Business Process: < ISO Process for Flexible Capacity RA Showing Assessment and Resource Counting> Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ300 FRAC5 BRQ330 Apply flexible capacity counting methodology and calculate EFCs for each resource that shall be established in the ISO tariff. Perform EFC verification and conduct necessary correspondence with LSEs BRQ340 Incorporate Flexible Capacity showing and compliance processes into BPMs for Reliability Requirements, Market Operations and Settlement and Billing. Business Process Manuals BPM Change Management Doc ID: GNFDMDEHU6BB Page 13 of 15

14 4.5 Business Process: < ISO Process for Must-Offer Obligation> Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ400 Calculate availability and publish compliance with must-offer obligation for 2015 RA compliance year, for each resource category, for information only. TBD Note: the availability shall be calculated as a percent of required availability (ration between hours with bids and required bidding hours) for each flexible resource category. 4.6 Business Process: < ISO Process for Settlement and Billing of Flexible Capacity System Deficiencies> ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ500 Update settlement configuration to perform backstop procurement for Flexible Capacity System Deficiencies. Settlement, RA System Doc ID: GNFDMDEHU6BB Page 14 of 15

15 4.7 Business Process: Flexible RA RUC Validation Business Requirements ID# Business Feature Requirement Type Potential Application(s) Impacted BRQ600 Bidding System (SIBR) shall receive two numbers from Master File (normal RA and flex RA) and will use the normal RA capacity as the RA capacity for IFM bidding rules related to RA MOO, but will use the greater of the two numbers as the RA capacity for RUC bidding rules related to RA MOO. This will ensure that the same clean RUC bid that currently goes to settlement from SIBR is consistent with the one used in RUC application. SIBR; Master File; CIRA Business Rule: This is important since it will mitigate any change to the Bid Cost Recovery (BCR) calculation, downstream system, or web service payload. This will also maintain our policy goal to use the bid extension due to flex RA is only done in RUC, and IFM keeps using the normal RA capacity bid extension as existing logic. Business Rule: RA MW = max {[normal RA MW + normal CPM MW), (flexible RA MW + flexible CPM MW)} Doc ID: GNFDMDEHU6BB Page 15 of 15